Tyco International Ltd. today reported a loss from continuing operations of 23 cents per share (all figures U.S.) f...
April 30, 2003
Tyco International Ltd. today reported a loss from continuing operations of 23 cents per share (all figures U.S.) for its second quarter, compared to a loss from continuing operations of $1.03 for the same period last year.
Tyco has been in a rebuilding mode since July 2002 when Ed Breen replaced Dennis Kozlowski, the company’s former chairman and CEO, who along with two other executives, faces charges in connection with the plundering of more than $600 million from the company. Kozlowski’s notorious spending sprees included $6,000 on a shower curtain and a $2.1 million lavish 40th birthday party for his wife.
Earnings per share from continuing operations for the six months ended March 31 were eight cents per share, including 55 cents related to the charges noted above.
For the six months ended March 31, 2002 the loss from continuing operations was 56 cents per share.
Revenues for the second quarter 2003 were $9 billion, up four per cent from $8.6 billion in the second quarter of last year, reflecting favorable changes in foreign currency rates.
“Our cash flow this quarter was well ahead of what we projected, demonstrating the underlying strength of our businesses, as well as improvements in the collection of receivables and the management of inventory.” said Breen.
The charges arising out of the Company’s ongoing program of intensified internal audits and detailed controls and operating reviews were $997.4 million pre-tax. This includes the $265 million to $325 million range of anticipated charges announced on March 13th.
“I am disappointed that our intensified internal audit and review efforts have identified additional charges, but I believe at this point we have identified all, or nearly all, legacy accounting issues,” Breen said.